price & range review of denim jeans October 2015
contents price & range review of denim jeans October 2015 introduction 3 key findings 4 range size & mix analysis 5 women s price architecture 9 men s price architecture 14 women s average price architecture vs men s 19 women s price tier analysis 21 men s price tier analysis 23 women s & men s combined price tier analysis 26 market map analysis 29 overall promotional analysis 32 appendix price tier methodology 36 2
introduction price & range review of denim jeans October 2015 This report contains the results of Retailmap's range and price survey of men s and women s denim jeans, in London, in October 2015. The fieldwork took place in the 1 week period commencing 7 th October 2015. For each product category surveyed, Retailmap has recorded the number of options in each retailer's range by original, full unit price point, to provide an overall view of entry, average and exit price architecture. In addition to price positioning, Retailmap has also analysed competitor range size. Debenhams data includes only their Own Label and Designers At Debenhams ranges. Urban Outfitters was audited only for men s jeans. Unless stated otherwise to the right, all stores were audited at Westfield White City. The following retailers were surveyed :- American Eagle Outfitters Blue Inc Burton Debenhams Diesel Dorothy Perkins Gap G-Star Guess H&M Hollister Jack & Jones Levi s M&S New Look Next Primark (Westfield Stratford) Pull & Bear River Island Superdry Topshop/Topman Uniqlo Urban Outfitters Zara (Westfield Stratford) 3
introduction key findings Value Sector Taking Primark as the key value retailer in the competitor set, it is interesting to see that the retailer actually has a larger number of options within men s jeans (55) than in women s (49). It is not only in terms of range size where Primark appears to be more competitive within men s jeans. When looking at price, Primark s average price of men s jeans ( 11.15) is actually than the entry price of the next lowest retailers (New Look, H&M at 14.99). Compare this to women s jeans, where Primark s entry price ( 7) is only 99 pence than those of New Look and H&M. Mid Market Looking at M&S, the retailer has a considerably larger range size within women s (113 options) than men s (40). But given that, there is actually little difference in the price architecture of both departments with women s only being 1.96 higher at average price than men s, and 50 pence higher at entry. Zara s price positioning within denim jeans places them competitively against Gap, River Island and Topshop/Man. Within men s jeans, Zara s average price is around 20% than that of River Island with that differential increasing to around 30% in women s denim jeans. Since entering the UK market, American Eagle Outfitters (AEO) has aimed to be a destination of choice when it comes to denim jeans. However, in terms of pure price & range, you could be forgiven for think that the retailer gets lost amongst the competition. With regards to range size, AEO is only broadly in line with the women s survey average, whilst in terms of price the retailer has narrow price architecture with a difference of only 12 between entry and exit price (compared to 29 at Debenhams). Another retailer with a quirk in their full price range is Gap. Looking at women s jeans, Gap has an average price which is higher than Superdry, Hollister and Topshop. Their range also has a large gap from their entry price ( 22.95) to their next price point of 34.95. This could be an area where they are missing up trading customers. Upper Middle G Star s entry and exit price architecture for women s and men s is exactly the same ( 80 entry, 140 exit). However, their range size of women s is less than half that of their men s range (15 vs 36 options). Despite this, there is only a 4 difference at average price across the two departments. When looking at the retailer set of Levi s, Guess, G-Star and Diesel, there is an interesting market dynamic. Within women s jeans, the entry price of said retailers are at least 5 higher than the exit price of the next nearest retailer (Gap). But within men s jeans, their ranges have a direct overlap with multiple different retailers. Men s vs Women s Price Architecture When looking at the market average price architecture of women s denim jeans vs men s, there is surprisingly little difference. There is only 1 difference at entry and average price, and only 4 difference at exit. Men s is the department which is only slightly higher at all three price metrics. 4
denim jeans range size & mix analysis October 2015 5
women's denim jeans range size Oct '15 120 113 100 98 84 number of options 80 60 40 71 68 63 62 54 52 51 49 48 46 46 44 43 20 24 23 23 22 15 0 the chart shows cash values of the entry, average and exit price shopping bags for each retailer. the shopping bag is based on a list of comparable product categories common to all retailers (see shopping bag tables) further details on shopping bag composition can be found in shopping bag methodology. 6
men's denim jeans range size Oct '15 100 90 91 80 number of options 70 60 50 40 30 20 60 58 56 55 55 53 51 48 46 45 43 42 41 40 40 38 36 34 28 25 23 16 16 10 0 the chart shows cash values of the entry, average and exit price shopping bags for each retailer. the shopping bag is based on a list of comparable product categories common to all retailers (see shopping bag tables) further details on shopping bag composition can be found in shopping bag methodology. 7
denim jeans range mix by product Oct '15 department American Eagle Blue Inc Burton Deben hams Diesel Dorothy Perkins Gap G-Star Guess H&M Hollister Jack & Jones Levi's women's denim jeans 54 - - 98 46 22 51 15 24 84 23-44 men's denim jeans 51 41 23 91 53-38 36 16 42 34 58 56 total 105 41 23 189 99 22 89 51 40 126 57 58 100 department M&S New Look Next Primark Pull and Bear River Island Superdry Topman Topshop Uniqlo Urban Outfitters Zara Survey Average women's denim jeans 113 62 63 49 46 48 23-68 43-71 52 men's denim jeans 40 25 60 55 46 45 16 55-28 48 40 43 total 153 87 123 104 92 93 39 55 68 71 48 111 82 Urban Outfitters was audited only for men s jeans. 8
women s denim jeans price architecture analysis October 2015 9
women's denim jeans denim jean price architecture Oct '15 exit price average price entry price 280 270 240 200 shopping bag 160 120 80 40 0 15 11 7 30 35 40 28 23 23 24 24 13 8 8 22 70 66 60 45 50 48 45 49 44 40 40 40 40 42 45 48 48 29 31 31 33 35 36 39 32 35 35 18 16 18 20 23 119 110 95 89 75 75 140 109 80 156 90 the chart shows cash values of the entry, average and exit price denim jeans for each retailer. 10
women s denim jeans original unit price ( ) architecture Oct 15 (area of bubble relates to number of options at each original unit price ( ) point) w 300.00 270.00 250.00 200.00 price points 150.00 100.00 50.00 0.00 15.00 11.10 7.00 34.99 23.34 7.99 39.99 23.53 7.99 29.99 22.77 12.99 45.00 31.31 16.00 39.99 28.71 17.99 49.50 31.31 18.00 48.00 32.97 20.00 28.00 24.00 22.00 69.95 48.15 22.95 44.00 40.11 32.00 34.90 60.00 45.00 41.54 39.74 35.00 36.00 110.00 89.32 49.00 75.00 44.99 39.87 39.00 119.00 95.33 75.00 140.00 109.33 80.00 155.65 90.00 (options) (49) (62) (84) (46) (98) (71) (113) (63) (22) (51) (54) (43) (48) (68) (23) (23) (44) (24) (15) (46) Primark New Look Source: Retailmap Survey, October '15 H&M Pull and Bear Deb's Zara M&S Next DP Gap American Eagle Uniqlo River Island Topshop Hollister Superdry Levi's Guess G-Star Diesel 11
women s denim jeans price architecture no. of options by price point Oct 15 orig. unit price Pull and American Primark New Look H&M Deb's Zara M&S Next DP Gap Uniqlo ( ) Bear Eagle River Island Topshop Hollister Superdry Levi's Guess G-Star Diesel Survey Total 7.00 7 - - - - - - - - - - - - - - - - - - - 7 7.01-8.00-1 3 - - - - - - - - - - - - - - - - - 4 9.01-10.00 20 - - - - - - - - - - - - - - - - - - - 20 11.01-12.00 7 - - - - - - - - - - - - - - - - - - - 7 12.01-13.00 7 2 1 4 - - - - - - - - - - - - - - - - 14 14.01-15.00 8 1 18 - - - - - - - - - - - - - - - - - 27 15.01-16.00 - - - 1 1 - - - - - - - - - - - - - - - 2 17.01-18.00 - - - 7 11 1 5 - - - - - - - - - - - - - 24 19.01-20.00-8 24 7 4 6-6 - - - - - - - - - - - - 55 20.01-25.00-47 4 8 15 9 29 9 14 1 - - - - - - - - - - 136 25.01-30.00-1 27 19 20 45 22 23 8 - - - - - - - - - - - 165 30.01-35.00-2 - - 14-31 2-1 8 43 1 - - - - - - - 102 35.01-40.00 - - 7-16 10 21 3 - - 13-25 44 21 - - - - - 160 40.01-45.00 - - - - 17-4 15-19 33-21 24-23 - - - - 156 45.01-50.00 - - - - - - 1 5-25 - - - - 2 - - - - - 33 50.01-60.00 - - - - - - - - - 4 - - 1 - - - - - - - 5 60.01-70.00 - - - - - - - - - 1 - - - - - - - - - - 1 70.01-80.00 - - - - - - - - - - - - - - - - 9 6 1-16 80.01-90.00 - - - - - - - - - - - - - - - - 18 2 3 2 25 90.01-100.99 - - - - - - - - - - - - - - - - 16 5-2 23 101.00-125.99 - - - - - - - - - - - - - - - - 1 11 9 10 31 126.00-150.99 - - - - - - - - - - - - - - - - - - 2 13 15 151.00-175.99 - - - - - - - - - - - - - - - - - - - 8 8 176.00-200.99 - - - - - - - - - - - - - - - - - - - 3 3 201.00-225.99 - - - - - - - - - - - - - - - - - - - 2 2 226.00-250.99 - - - - - - - - - - - - - - - - - - - 1 1 251.00-270.00 - - - - - - - - - - - - - - - - - - - 5 5 Total 49 62 84 46 98 71 113 63 22 51 54 43 48 68 23 23 44 24 15 46 1047 Source: Retailmap Survey, October '15 12
women's denim jeans price stretch Oct '15 6 5 4 5.0 4.4 price stretch 3 2 3.0 3.0 2.8 2.8 2.4 2.3 2.2 2.1 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.3 1.3 1 1.0 1.0 0 American Eagle Debenhams Diesel Dorothy Perkins Gap G-Star Guess H&M Hollister Levi's M&S New Look Next Primark Pull and Bear River Island Superdry Topshop Uniqlo Zara exit price 44 45 270 28 70 140 119 40 49 110 50 35 48 15 30 60 45 45 35 40 66 entry price 32 16 90 22 23 80 75 8 39 75 18 8 20 7 13 35 45 36 35 18 35 price stretch 1.4 2.8 3.0 1.3 3.0 1.8 1.6 5.0 1.3 1.5 2.8 4.4 2.4 2.1 2.3 1.7 1.0 1.3 1.0 2.2 1.9 Survey Average the chart shows each retailer's price architecture stretch (the breadth between a retailer's entry price and exit price denim jeans) a high number means a wider price architecture stretch, a low number means a narrower stretch allows you to quickly compare each retailer s price architecture stretch 13
men s denim jeans price architecture analysis October 2015 14
men's denim jeans denim jean price architecture Oct '15 exit price average price entry price 280 260 240 200 shopping bag 160 120 80 40 0 16 11 5 75 60 50 30 30 36 40 35 40 40 22 25 25 26 29 29 34 35 35 37 39 39 30 15 20 18 15 25 18 20 20 20 74 70 60 50 49 43 43 44 30 32 33 36 140 85 65 62 63 66 60 40 40 100 109 84 65 90 75 148 140 106 90 80 the chart shows cash values of the entry, average and exit price denim jeans for each retailer. 15
men s denim jeans original unit price ( ) architecture Oct 15 (area of bubble relates to number of options at each original unit price ( ) point) m 300.00 260.00 250.00 200.00 price points 150.00 100.00 85.00 140.00 140.00 147.55 109.00 100.00 105.69 50.00 0.00 16.00 11.15 5.00 29.99 21.95 14.99 39.99 25.82 14.99 39.50 29.35 17.50 35.99 25.03 17.99 29.99 24.99 19.99 39.99 33.79 19.99 60.00 34.55 20.00 49.50 39.04 20.00 35.00 28.78 25.00 75.00 36.53 30.00 60.00 42.78 30.00 74.00 43.10 32.00 49.95 44.45 32.95 34.90 39.00 61.72 40.00 65.58 40.00 64.99 63.12 59.99 84.38 65.00 89.63 75.00 80.00 90.00 (options) (55) (25) (42) (40) (46) (41) (40) (60) (91) (23) (55) (45) (51) (38) (28) (34) (58) (45) (16) (56) (16) (36) (53) Primark New Look Source: Retailmap Survey, October '15 H&M M&S Pull and Bear Blue Inc Zara Next Deb's Burton Topman River Island American Eagle Gap Uniqlo Hollister Jack & Jones Urban Superdry Levi's Guess G-Star Diesel Outfitter 16
men s denim jeans price architecture no. of options by price point Oct 15 orig. unit price Pull and Primark New Look H&M M&S Blue Inc Zara Next Deb's Burton Topman River Island American Gap Uniqlo Hollister Jack & Urban Superdry ( ) Bear Eagle Jones Outfitters Levi's Guess G-Star Diesel Survey Total 5.00 2 - - - - - - - - - - - - - - - - - - - - - - 2 7.01-8.00 5 - - - - - - - - - - - - - - - - - - - - - - 5 8.01-9.00 8 - - - - - - - - - - - - - - - - - - - - - - 8 9.01-10.00 15 - - - - - - - - - - - - - - - - - - - - - - 15 11.01-12.00 10 - - - - - - - - - - - - - - - - - - - - - - 10 13.01-14.00 8 - - - - - - - - - - - - - - - - - - - - - - 8 14.01-15.00 3 1 9 - - - - - - - - - - - - - - - - - - - - 13 15.01-16.00 4 - - - - - - - - - - - - - - - - - - - - - - 4 17.01-18.00 - - - 2 4 - - - - - - - - - - - - - - - - - - 6 19.01-20.00-13 10 6 17 17 5 4 1 - - - - - - - - - - - - - - 73 20.01-25.00-10 2 7 6 7-6 - 8 - - - - - - - - - - - - - 46 25.01-30.00-1 14 9 9 17 12 18 25 7 20 6 - - - - - - - - - - - 138 30.01-35.00 - - - 9 - - - 13 15 8 2 5 7 3 28 - - - - - - - - 90 35.01-40.00 - - 7 7 10-23 10 2-28 9 6 7-34 4 1 - - - - - 148 40.01-45.00 - - - - - - - 3 43-4 18 33 18 - - 2 13 - - - - - 134 45.01-50.00 - - - - - - - - 5 - - 2 1 10 - - 4 11 - - - - - 33 50.01-60.00 - - - - - - - 6 - - - 5 1 - - - 16 1 6 - - - - 35 60.01-70.00 - - - - - - - - - - - - - - - - 27 7 10 4 - - - 48 70.01-80.00 - - - - - - - - - - 1-3 - - - 3 - - 19 5 1-32 80.01-90.00 - - - - - - - - - - - - - - - - 2 6-22 4 15 2 51 90.01-100.99 - - - - - - - - - - - - - - - - - - - 11 4 2 3 20 101.00-125.99 - - - - - - - - - - - - - - - - - 3 - - 3 12 14 32 126.00-150.99 - - - - - - - - - - - - - - - - - 3 - - - 6 16 25 151.00-175.99 - - - - - - - - - - - - - - - - - - - - - - 4 4 176.00-200.99 - - - - - - - - - - - - - - - - - - - - - - 7 7 201.00-225.99 - - - - - - - - - - - - - - - - - - - - - - 5 5 226.00-250.99 - - - - - - - - - - - - - - - - - - - - - - 1 1 251.00-260.00 - - - - - - - - - - - - - - - - - - - - - - 1 1 Total 55 25 42 40 46 41 40 60 91 23 55 45 51 38 28 34 58 45 16 56 16 36 53 994 Source: Retailmap Survey, October '15 17
men's denim jeans price stretch Oct '15 4 3.5 3 3.2 3.0 2.9 2.7 2.5 2.5 price stretch 2 2.3 2.3 2.1 2.0 2.0 2.0 2.0 2.0 1.8 1.5 1.5 1.5 1.5 1.4 1 1.1 1.0 1.0 0 American Eagle Blue Inc Burton Debenhams Diesel Gap G-Star Guess H&M Hollister Jack & Jones Levi's M&S New Look Next Primark Pull and Bear River Island Superdry Topman exit price 74 30 35 50 260 50 140 109 40 39 85 100 40 30 60 16 36 60 65 75 35 140 40 70 entry price 32 20 25 20 90 33 80 75 15 39 40 65 18 15 20 5 18 30 60 30 35 40 20 36 price stretch 2.3 1.5 1.4 2.5 2.9 1.5 1.8 1.5 2.7 1.0 2.1 1.5 2.3 2.0 3.0 3.2 2.0 2.0 1.1 2.5 1.0 3.5 2.0 2.0 Uniqlo Urban Outfitters Zara Survey Average the chart shows each retailer's price architecture stretch (the breadth between a retailer's entry price and exit price denim jeans) a high number means a wider price architecture stretch, a low number means a narrower stretch allows you to quickly compare each retailer s price architecture stretch 18
denim jeans women s average price architecture vs men s average October 2015 19
survey average of women s denim jeans vs. men's Oct '15 exit price average price entry price 80 70 66 70 60 shopping bag 50 40 30 48 49 35 36 20 10 0 women's average men's average the chart shows cash values of the entry, average and exit price shopping bags for the women s and men s survey average. 20
women s denim jeans price tier analysis October 2015 21
women's denim jeans price tier analysis Oct '15 Primark Dorothy Perkins Pull and Bear H&M New Look Zara M&S 100% 41% 59% 41% 59% 8% 37% 55% 3% 19% 77% 14% 10% 76% 4% 19% 27% 27% 23% Debenhams Uniqlo Next Hollister American Eagle Topshop Superdry 10% 12% 34% 26% 18% 100% 32% 25% 24% 19% 9% 91% 39% 61% 6% 54% 40% 100% River Island Gap Diesel G-Star Guess Levi's 17% 6% 77% 2% 2% 37% 59% 100% 100% 100% 100% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 22
men s denim jeans price tier analysis October 2015 23
men's denim jeans price tier analysis Oct '15 slide 1 of 2 Primark New Look Blue Inc Pull and Bear Burton H&M 22% 17% 4% 41% 4% 65% 33% 100% 96% 59% 74% 35% 50% M&S Uniqlo Next Zara Topman Hollister 2% 15% 7% 18% 17% 58% 51% 100% 45% 100% 52% 15% 40% 38% 17% 28% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 24
men's denim jeans price tier analysis Oct '15 slide 2 of 2 American Eagle Debenhams River Island Gap Superdry Jack & Jones 6% 22% 4% 52% 56% 74% 100% 71% 76% 3% 20% 18% 7% 14% 44% 24% 8% 1% Urban Outfitters Levi's Diesel G-Star Guess 27% 93% 100% 100% 100% 71% 7% 2% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 25
women s & men s denim jeans combined price tier analysis October 2015 26
women s and men s combined price tier analysis Oct '15 slide 1 of 2 Primark Dorothy Perkins Blue Inc Pull and Bear New Look H&M 6% 11% 2% 6% 41% 41% 32% 56% 36% 100% 59% 59% 58% 41% 53% Burton Zara M&S Uniqlo Next Topman 3% 16% 2% 9% 14% 7% 7% 21% 25% 61% 21% 51% 65% 54% 31% 39% 37% 40% 35% 16% 27% 18% Debenhams Hollister American Eagle Topshop River Island Superdry 5% 4% 3% 6% 9% 31% 33% 54% 67% 100% 19% 96% 57% 40% 13% 34% 7% 12% 10% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 27
women s and men s combined price tier analysis Oct '15 slide 2 of 2 Gap Jack & Jones Urban Outfitters Levi's Diesel G-Star 34% 22% 27% 96% 100% 100% 53% 71% 71% 4% 9% 7% 2% 3% 1% Guess 100% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 28
denim jeans market map positioning October 2015 29
women s denim jeans market map Oct 15 total range size versus average price 170.00 160.00 150.00 Diesel 140.00 130.00 120.00 average price denim jean 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 G-Star Guess Superdry Hollister River Island Uniqlo Levi's Gap American Eagle Next Topshop Debenhams M&S 20.00 10.00 Dorothy Perkins Pull and Bear Primark New Look Zara H&M 0.00 10 30 50 70 90 110 130 range size this analysis plots each retailer on a market map in terms of range size (no. of options) and average price of a denim jean. the size of each retailer s bubble is relative to their range size. use this analysis to identify competitor clusters or outlying retailers in the competitive marketplace based on range size and average price position. 30
men s denim jeans market map Oct 15 total range size versus average price 170.00 160.00 150.00 140.00 Diesel 130.00 120.00 average price denim jean 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 Guess Superdry Uniqlo Burton New Look G-Star Gap Zara Hollister M&S H&M Blue Inc Urban Outfitters River Island Levi's Jack & Jones American Eagle Topman Next Pull and Bear Primark Debenhams 0.00 10 20 30 40 50 60 70 80 90 100 range size this analysis plots each retailer on a market map in terms of range size (no. of options) and average price of a denim jean. the size of each retailer s bubble is relative to their range size. use this analysis to identify competitor clusters or outlying retailers in the competitive marketplace based on range size and average price position. 31
denim jeans overall promotional analysis October 2015 32
denim jeans range mix by promotion type no. & % of options Oct 15 promotion type % off mixed sale multibuy off total American Deben Dorothy Jack & New River Urban Survey Blue Inc Burton Gap H&M Hollister M&S Uniqlo Eagle hams Perkins Jones Look Island Outfitters Average 94 - - 4 - - - - 27 - - - - - 42 100% - - 8% - - - - 100% - - - - - 48% - 17-6 2 9 1 5-4 3 1 3 21 7-100% - 12% 100% 56% 100% 100% - 100% 100% 100% 100% 100% 27% - - 19 39 - - - - - - - - - - 29 - - 100% 80% - - - - - - - - - - 22% - - - - - 7 - - - - - - - - 7 - - - - - 44% - - - - - - - - 3% 94 17 19 49 2 16 1 5 27 4 3 1 3 21 19 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% the table shows the range mix by promotion type, for each retailer, both as a number of options and percent of the total range. the data shown is a combined total across women s and men s denim jeans. the table only shows retailers who had promotional activity at the time of the survey. 33
denim jeans range mix by promotion or multibuy no. & % of options Oct 15 promotion vs. multibuy promotion multibuy total American Blue Inc Burton Debenha Dorothy Jack & New River Urban Grand Gap H&M Hollister M&S Uniqlo Eagle ms Perkins Jones Look Island Outfitters Total 94 17-10 2 16 1 5 27 4 3 1 3 21 16 100% 100% - 20% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 78% - - 19 39 - - - - - - - - - - 29 - - 100% 80% - - - - - - - - - - 22% 94 17 19 49 2 16 1 5 27 4 3 1 3 21 19 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% the table shows the range mix by promotion or multibuy split, for each retailer, both as a number of options and percent of the total range. the data shown is a combined total across women s and men s denim jeans. the table only shows retailers who had promotional activity at the time of the survey. 34
denim jeans promotion and depth % of options Oct 15 denim jeans % of options on promotion denim jean % depth of promotion American Eagle 90% Uniqlo 72% Burton 83% Dorothy Perkins 58% Urban Outfitters 47% New Look 57% Jack & Jones 47% Jack & Jones 50% Blue Inc 41% H&M 50% Debenhams 26% Hollister 38% Gap 18% M&S 38% Survey Average 13% River Island 38% Dorothy Perkins 9% Gap 34% Hollister 9% Survey Average 32% Uniqlo 4% Urban Outfitters 31% New Look 3% Debenhams 27% M&S 3% American Eagle 25% River Island 1% Burton 20% H&M 1% Blue Inc 20% 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% the left chart shows the % of a retailers range that is on promotion (promotion or markdown) at the time of the audit. the right chart shows the depth of promotion, the amount of possible savings, in each retailer at the time of audit represented as a %. the data shown is a combined total across women s and men s denim jeans. the charts only show retailers who had promotional activity at the time of the survey. 35
appendix price tiers methodology & price bands October 2015 36
price tier methodology example price tier architecture no. of options by original price point original unit price Retailer 1 Retailer 2 Retailer 3 Retailer 4 Retailer 5 Retailer 6 Retailer 7 Retailer 8 Retailer 9 Retailer 10 Survey Total Survey Average Cummulative Survey Average 5.00 2 - - - - - - - - - 2 1% 1% 6.00-1 - - - - - - - - 1 0% 1% 7.00 - - 3 - - - - - - - 3 1% 3% 9.00 - - 6 - - - - - - - 6 3% 5% 9.99 - - - 3 2 - - - - - 5 2% 7% 10.00 5 5 6 - - 5 - - - - 21 9% 17% 11.00 - - 6 - - - - - - - 6 3% 19% 12.00 - - - - - 1 - - - - 1 0% 20% 12.50 - - - - - - 5 4 - - 9 4% 24% 12.99 - - - 3 - - - - - - 3 1% 25% 13.00 - - 2 - - - - - - - 2 1% 26% 14.00 5 9 - - - 9 4 - - - 27 12% 38% 14.99 - - - 2 2 - - - - - 4 2% 40% 15.00 - - 4 - - - - - 5-9 4% 43% 16.00 - - - - - 8 3 - - - 11 5% 48% 16.99 - - - 3 - - - - - - 3 1% 50% 18.00 - - - - - 6 - - - - 6 3% 52% 19.50 - - - - - - - 4 - - 4 2% 54% 19.99 - - - 5 8 - - - - - 13 6% 60% 20.00 - - - - - 3 2 - - 4 9 4% 64% 22.50 - - - - - - - 3 - - 3 1% 65% 22.99 - - - 3 - - - - - - 3 1% 66% 24.99 - - - - 4 - - - - - 4 2% 68% 25.00 - - - - - - 1 10 10-21 9% 77% 25.99 - - - 2 - - - - - - 2 1% 78% 26.00 - - - - - - - - - 2 2 1% 79% 27.50 - - - - - - - 3 - - 3 1% 80% 28.00 - - - - - - - - - 4 4 2% 82% 29.50 - - - - - - - 16 - - 16 7% 89% 29.99 - - - - 8 - - - - - 8 4% 93% 30.00 - - - - - - - - 4 2 6 3% 95% 32.00 - - - - - - - - - 2 2 1% 96% 32.50 - - - - - - - 1 - - 1 0% 96% 34.99 - - - - 1 - - - - - 1 0% 97% 35.00 - - - - - - - 1 - - 1 0% 97% 39.50 - - - - - - - 1 - - 1 0% 98% 40.00 - - - - - - - - - 1 1 0% 98% 42.00 - - - - - - - - - 2 2 1% 99% 45.00 - - - - - - - - - 2 2 1% 100% Total 12 15 27 21 25 32 15 43 19 19 228 100% - LOWEST 20% OF OPTIONS = LOWER PRICE TIER SECOND 20% OF OPTIONS = LOWER MIDDLE PRICE TIER MIDDLE 20% OF OPTIONS = MIDDLE PRICE TIER SECOND HIGHEST 20% OF OPTIONS = UPPER MIDDLE PRICE TIER HIGHEST 20% OF OPTIONS = UPPER PRICE TIER Each product category is split into 5 equal parts in terms of overall number of options Each of these 5 equal parts has a price tier name (, etc.) If a category can not be split into 5 equal (or roughly equal) tiers then it is excluded from the analysis This price tier analysis provides a strategic measure of a retailer s price architecture approach 37
Pricing analysis & research for retailers If you have any questions or comments on this report, please contact: Retailmap 4-5 Phoenix Park Telford Way Stephenson Industrial Estate Coalville Leicestershire LE67 3HB UK T: +44 (0)1530 837399 E: ricky.attenborrow@retailmap.com